Multichannel mortgage lender New American Funding (NAF) announced this week the relaunch of its initiative designed to recruit, educate and expand loan officer understanding around issues faced by borrowers of color as “NAF Black Impact.”
This replaces the previous branding, “NAF Dream,” to emphasize a corporate commitment to “taking direct, action-oriented steps to address credit accessibility and promote sustainable and equitable homeownership for Black individuals and communities,” the company stated.
Originally launched in 2016, the initiative was designed to educate and recruit loan officers to better understand the existing barriers to Black homeownership. In concert with this renewed branding, the company said it has committed to “extending $20 billion in new mortgages to Black homebuyers by the year 2028.”
The program will create and maintain partnerships with real estate agents, other lenders and community organizations in an effort to “ensure that Black homebuyers have access to fair and affordable housing options,” the company explained. “NAF is also providing the Black community with access to educational resources, products, services, partnerships, and in-market support to drive sustainable homebuying and investment purchase goals.”
Patty Arvielo, NAF co-founder and CEO, said that the new name and renewed effort was necessary to illustrate the company’s priorities.
“For us, this is much more than a rebrand of the initiative. This was a necessary step to demonstrate our responsibility to the Black community,” Arvielo said. “NAF Black Impact means that we commit to providing access to mortgages and financial resources to help more Black families achieve homeownership. By providing the necessary support, we believe that we can make a difference and create a more equitable society for all.”
Mosi Gatling, senior vice president of strategic growth and expansion, echoed the sentiment and the company’s stated need to act.
“We are firm in our belief that homeownership should be within everyone’s reach, and we are dedicated to transforming this vision into a reality,” Gatling said. “We want NAF to become the place where all Black families feel comfortable and supported in their homeownership journey. We want them to know that NAF is here for them.”
Data illustrating the racial homeownership gap substantiates disparities between racial groups. According to first-quarter 2024 data from the U.S. Census Bureau as cited by the Federal Reserve, the rate of African American homeownership was 45.7% while the rate among whites stood at 74%.
Across all income ranges — including those above $100,000 per year — homeownership rates were lower for Black households when compared with white households, reducing the likelihood of even a higher income bracket having a pronounced impact on the odds of homeownership.